G.R. No. 158075 - Philippine Diamond Hotel and Resort, Inc. vs. Manila Diamond Hotel Employees Union

Manila Diamond Hotel Employees Union (the union) registered with DOLE on August 19, 1996.
On November 11, 1996, it filed a Petition for Certification Election with DOLE-NCR, which was denied for non-compliance with Section 2, Rule V, Book V and for fragmenting the workforce.

On June 2, 1997, cashier Francis Mendoza failed to remit ₱71,692.50.
Mendoza implicated union president Jose Leonardo B. Kimpo, who claimed ignorance; Mendoza was suspended one week, and Kimpo was reassigned to Cost Control on July 14, 1997.

Through Kimpo, the union served a Notice to Bargain; hotel refused recognition absent certification.
On September 18, 1997, union called a strike vote; filed Notice of Strike on September 29, 1997 with NCMB, alleging unfair labor practices (ULP) including refusal to bargain and harassment.
NCMB conciliation conferences held October 6, 13, and 20, 1997; union insisted on a CBA for its members.

On November 20, 1997, parties agreed to a consent election under proper procedure; union scheduled next conciliation for December 1.
On November 29, 1997, union struck; National Union of Workers in the Hotel, Restaurant and Allied Industries (NUWHRAIN) and some supervisors joined.
On December 1, 1997, hotel filed an injunction with NLRC; three supervisors fired and they filed illegal dismissal complaints.
NLRC ocular inspection (December 4) confirmed strikers’ blockade of hotel ingress/egress; NLRC issued a TRO (December 8) ordering cessation of obstruction; tent removed December 10, resulting in stone projectiles and injuries.

On April 15, 1998, DOLE Secretary Trajano certified the dispute to NLRC for compulsory arbitration and directed return to work.
On April 30, 1998, Acting Secretary Español modified the order to reinstate strikers to payroll only and consolidated related cases.
NLRC Resolution (November 19, 1999) declared the strike illegal, union officers and members lost employment status, and dismissed related complaints.
Court of Appeals (November 21, 2002) affirmed NLRC’s findings of illegality and loss of status for officers, but ordered reinstatement and backwages for union members.
Hotel appealed to the Supreme Court seeking reversal of reinstatement and backwages.

Whether the Court of Appeals erred in ordering reinstatement and backwages for union members declared to have lost their employment status.
Whether such order deviated from established jurisprudence on illegal strikes, loss of employment status, and backwages.